e V o associates, inc.

1. eVoassociates, inc. eVolutionary Business Advisory Services Metrics & Management Building High Performance Organizations Summer 2011

2. Observing Extraordinary Organizations “Successful organizations that have sustained rapid growth for years while achieving even higher levels of efficiency and quality have change woven into the very fabric of the organization. Like a school of fish these organizations are constantly moving -- they are fast, focused and extremely flexible.” John Mathers & Bill Daniels Change-ABLE Organization

3. ACTION Double Loop Learning In today’s business, the predominant planning method is Single-Loop Action GOVERNING VALUES & ASSUMPTIONS OUTCOME: Mismatch to Expectations Single Loop: Change Action Primary Response to Mismatch: CHALLENGE THE VALUES and ASSUMPTIONS

4. Strategic Business Definition Goal Setting Planning Political Roles and Power Resource Allocation Decision Making Cultural Values Reward Criteria Style x The Change Levers • External • Market • Technological • Internal • Goals • Roles • Processes • People x x x x x x x x x x x

5. Vision Mission Strategic Analysis Strategy Objectives Programs/Projects Resources UsefulModel of Strategic Planning adapted from Below, et. al. Executive’s Guide to Strategic Planning, 1989

6. System of Strategic Alignment Core Values & Beliefs Purpose Mission VISION • à Internal Assessment • àExternal Assessment • àStrategic Decisions & Objectives • Customers • Capabilities • Products and Services • Finance • People and Organization • Systems STRATEGY • Performance Plans • What is Going to Be Done by Whom by When • Work Reviews • Ahead, On Track, Behind or At Risk • Recommendations TACTICS

7. Strategy Development • Internal Assessment VISION ¦ Resources and Internal Capabilities ¦ Core Competencies ¦ Strengths and Weaknesses • External Assessment ¦ Industry, Market and Technological Trends ¦ Competitive Analysis ¦ Social, Demographic and Regulatory Environment ¦ Key Opportunities and Threats STRATEGY • Strategic Decisions ¦ Customers ¦ Capabilities ¦ Products /Services ¦ Finances ¦ People and Organization ¦ Systems • Strategic Objectives ¦ The Vital Few TACTICS

8. On Track Provide quality consulting to selected clients Too many clients and not enough time to coordinate in person; could be trouble 80% • Sold time = 45% • Marketing time = 12% 60% 40% 20% 0% • Bill • Michael • Leslie Jul Oct Jan Apr Jun Dec Feb Aug Sep Mar Cum Nov May Sold Time Plan Re-institute regular bi-weekly project meetings None From Strategy to Results Networked Performance Plans Integrated Strategic Plan Priority Partners • Organization Objectives • Financials • Business Objectives • Key Deliverables • Key Enabling Projects • Capability enhancing efforts Vision / Mission % Strategic Analysis Strategy Regular Work Reviews Objectives Programs/Projects Resources

9. Strategic Plan Operational Plan • Vision • Charter • Strategic Analysis • Key Objectives • Strategy • Performance Indicators • Long Term Objectives •Priorities • Programs • Partners • Financial Projections • Implementation Plans • • Budgets • Results Management • Reporting Systems • Project, Department and Individual Results • Corrective Actions • Reward and Development From Strategy to Results • Strategy Performance Plans Work Reviews

10. GOALS ROLES & RESPONSIBILITIES METHODS PERSONAL RELATIONSHIPS Approaches to Organization Development • CLASSIC • - Focus is on people • - Assumes independence • - Satisfying relationships is the key variable • TASK - ORIENTED • - Focus is on anoverarching goal • - Assumesinterdependence • - Ability to perform against the planis the key variable. GOALS PROCESSES PERSONAL RELATIONSHIPS

11. Performance Plan Work Review ORG Objectives Work Review . . 3 . . 3 . . 3 . 3 . . 3 . . Done/Not Done . 3 . 3 . 3 Performance Plans & Work Reviews

12. ORG Quarterly Monthly Monthly Weekly Weekly Weekly Daily Feedback Loops: “Look Ma!” DIV

13. Systems Model Input Process Pace Feedback Quality Feedback Output Customers Internal/External

14. Hi Routine Projects Predictability Trouble- Shooting Negotiables Lo Delay Tolerance Hi Task Grid

15. Done! Routine Metrics Quantity Timeliness Completeness Accuracy

16. Quantity Timeliness Completeness Accuracy Say how much of output is to be done State timeframe in which output will be done Tell how thoroughly each output will be done Specify the precision required for each output Goal Sample To continue to process 98% of 24 semimonthly payrolls 2 days prior to each payroll data, with less than 0.5% adjustment due to employee complaint in 20__. Metrics: Routine

17. 1995 Project Metrics Change Implement Deadline

18. Change Implementation Deadline Describe what change will be made Define who will use the change State the deadline Goal Sample To implement the new information retrieval system for all field service representatives in Milwaukee, according to the design specification of proposal #4 dated March 14, 20__. Metrics: Project

19. Trouble-Shooting Metrics Response Time Average Solution Time First Pass Success Manner

20. Response Time Average Solution Time First-Pass Success Manner Specify how quickly a problem is to be acknowldeged. State average time in which most problems are resolved State % of problems to be solved the first time done Describe personal communication behavior desired Goal Sample Be on site with emergency maintenance calls in 15 minutes and complete 80% of repairs in 90 minutes well enough so same problem does not recur in six months; stay calm and report work to operators and their supervisor/s. Metrics: Trouble Shooting

21. Negotiable Metrics Becomes ... • Trouble-Shooting or • Project Standard

22. If the task occurs frequently, use a Trouble Shooting standard. If it occurs infrequently, commit to performing it according to Project goals set at that time. Standard Sample To acknowledge special-request cost-studies on same day of receipt and to complete such studies within 2 weeks sufficiently enough to avoid any reward in 95% of cases. Goal Sample In all cases, to complete special-request cost-studies according to the formats, deadlines, and expenses agreed upon with the recipient at the time of initiation. Metrics: Negotiable

23. Self-Monitored Feedback Requirement: Immediate, self-validating, simple and informal Routine: Batching inputs & outputs, Tally sheets, Checklists Project: Gantt charts, To Do lists, Event checklists Unpredictables: 30 second reports, Checklists, War stories, Rehearsals, Advertising your database

24. Work Reviews - Individual Performer Purpose: • Develop agreement on projects and routine activities • Establish INFORMAL self-monitoring feedback system • Resolve resource needs quickly Action: • Negotiate projects or routine activities with milestones or measures • Specify TO DOs list for the next four weeks • At the end of the week, individual performer reviews: • What has been done • What has not been done • Actions/resources required for correction • What TO DO for next week • At month end, plan outcomes for the next month

25. This Week: 1. Develop RTO plan 2. Design front-end 3. Test front-end 4. Initiate back-end Next Week: 1. 2. 3. 3 3 3 Work Review Individual: Done/Not Done Plan for this week What was done this week What wasn’t done What to do about what wasn’t done this week What is planned for next week

26. Work Reviews - Team Leads Purpose: Regular (i.e., weekly) part of the staff meeting Focus on actions toward predefined objectives or standards Support individual in aligning resources and dealing with performance issues Provide peer review opportunities for growth, resource support and input Action: Review objectives and critical metrics or milestones State “on target” or not Specify Corrective Action and Resource Requirements Complete in five minutes or less

27. Week 2 – Jan 2009 To Do Week 2 – Jan 2009To Do Mon Fri Tues Sat Wed Sun Thurs Done/Not Done Meeting Work Review Team Projects Time Tasks W1 W2 W3 M1 M2 Q1 Q2 Q3 Q4 D1 D2 D3 D4 D5 D6 D7 D8 D9 D10 D11 Intel

28. Work Review Joe Teamlead Consulting Manager Nov 3, 1995 On Track Provide quality consulting to selected clients Too many clients and not enough time to coordinate in person; could be trouble 80% • Sold time = 45% • Marketing time = 12% 60% 40% 20% 0% • Bill • Michael • Leslie Jul Oct Dec Jun Jan Apr Aug Feb Sep Mar Cum Nov May Sold Time Plan Re-institute regular bi-weekly project meetings None Work Review Manager/Team Lead

29. Change = continuous re-engineering Re-START START